Sun Jan 26 19:30:42 IST 2025: ## MGNREGS Wage Disbursements Delayed Due to Budget Shortfall

**New Delhi, January 26, 2025** – The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is facing a significant funding shortfall, leading to delays in wage payments to workers. The Union Rural Development Ministry is reportedly ₹4,315 crore short for already generated Fund Transfer Orders (FTOs), violating the MGNREG Act’s mandate for weekly or bi-weekly wage disbursement.

The government’s allocation of ₹86,000 crore in the 2024 Interim Budget has proven insufficient. Further compounding the issue is a ₹5,715 crore liability for the central government’s share of material costs. This delay in material payments impacts future projects, as vendors become hesitant to supply materials, disrupting the work cycle.

Despite repeated requests, the Union Finance Ministry refused to revise the budget, despite the acknowledged shortfall. While the government previously argued that MGNREGS is demand-driven and funding is adjusted as needed (as seen in FY2020-21’s substantial budget increase), critics argue the current low allocation artificially suppresses demand.

The Parliamentary Standing Committee on Rural Development echoed these concerns in a February 2024 report, highlighting the detrimental cascading effects of insufficient budget allocation on timely wage releases and material payments. Academics and activists similarly warn of the negative consequences of this underfunding. The situation underscores the growing need for increased funding to ensure the scheme’s continued efficacy.

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